23.9% of people who financed a new vehicle last quarter got an 84+ month loan. The average monthly payment soared to a new record of $777, but many pay more. People are putting less money down and financing an average of $44,156. The average transaction price for a new vehicle is hovering around $50,000, so it comes as little surprise buyers are embracing longer loans. This has been playing out for awhile and Ram introduced a 10-year/100,000-mile limited powertrain warranty as CEO Tim Kuniskis noted nearly 80% of new truck loans exceed five years. However, five years is nothing as many shoppers are now turning to even longer loans. According to Edmunds, a record 36.5% of people who financed a new vehicle in the second quarter opted for a loan of 73 months or more. That’s over six years and the number has soared from 27.3% in 2016. More: America’s $1.7 Trillion Auto Debt Is Driving Repos Back To Recession Levels Even more surprisingly, 23.9% of financers signed up for loans lasting at least 84 months. That’s seven years and yet another record. Despite the fact that customers are embracing longer loans, the average monthly payment has soared to a new record of $777. That’s an all-time high for the third consecutive quarter and it means people are paying an average of $9,324 per year. That’s a lot of money, but 20.3% of new vehicle financers opted for payments of $1,000 or more in the second quarter. That ties the all-time high and is up slightly from Q1. New Car Financing Q2 2026Q2 2025Q1 2026Term70.469.870.3Monthly Payment$777$756$773Amount Financed$44,156$42,388$43,899APR77.26.9Down Payment$5,815$6,433$6,206 SWIPE Given that monthly payments have soared to a new record, it’s not surprising to learn that the average amount financed has also hit a new all-time high. Buyers are taking on an average of $44,156 in debt, which is up $257 from the first quarter and $1,768 from a year ago. If that wasn’t bad enough, people are putting less money down on their purchases. The average down payment dropped to $5,815 and that’s below the $6,206 in Q1 as well as the $6,433 last year. In fact, down payments now make up just 11.6% of the average total purchase price and that’s the lowest percentage in nearly six years. Banks are making bank as the average lifetime interest payment has soared to a new record of $9,811. That’s up $195 from a year ago and the average annual percentage rate was 7% in the quarter. Used Car Financing Q2 2026Q2 2025Q1 2026Term70.169.769.9Monthly Payment$576$559$559Amount Financed$30,414$29,080$29,314APR10.510.910.8Down Payment$4,016$4,092$3,993 SWIPE Used car buyers are also paying a ton as a record 6.3% of them opted for monthly payments of $1,000 or more. The average amount financed for a used vehicle also shot up from $29,080 last year to $30,414 in the second quarter. That’s enough to buy several brand-new vehicles including the Buick Envista, Chevrolet Trax, Nissan Kicks, and Toyota Corolla Cross – just to name a few. Edmunds’ head of insights, Jessica Caldwell, said “The Q2 data perfectly illustrates the stark reality of today’s new-vehicle market: Affordability is such a massive hurdle that buyers are forced to stretch their budgets to the absolute limit just to get into a new vehicle.” She added “this is the new normal for new-car buyers” and noted “consumers will have to keep walking this financial tightrope” for the foreseeable future.